Is it a good idea to use your Tax Refund to purchase or lease a new or used car in Charleston / Hilton Head?

Here is how your tax refund helps with your Jeep or Dodge purchase in Charleston 

Whether you are purchasing a new or used Jeep, RAM Truck or Dodge Hornet for getting around the greater Charleston or Savannah area, it is a smart decision to put some money down on the car to help lower your monthly payment. Let’s say you are buying a car for $30k and financing it for 60 months at a rate of 3.9% interest. If you can put just $5,000 down on your next purchase, you can save about $100 per month over the life of the loan. You can research all different kinds of payment scenarios on our payment estimator.  

 2. Using the tax refund may help you qualify for a loan or better interest rate 

If you have had some bad credit problems in the past you will likely need to put some money down. Creditors like to see a small amount of down payment. This is especially important if your credit is not the best. It may help you get approved for a loan if you have the down payment to show credit worthiness.  

 3. If you have an existing loan or lease you can pay it down quicker if using your tax refund 

Let’s say you have a $3,000 tax return. If your auto loan is $600 a month, that is five months worth of payments. If you put it towards your loan, that is more money going to principal instead of interest, so you’ll pay off your loan sooner. Or if leasing, you can use that money towards your lease freeing up that money for other things.  

Bonus:  You can use your tax refund for repairs too   

Who says you have to use your entire tax refund all in one place. If you have any deferred maintenance on your vehicle, now is the time to put that refund in part to use in regular upkeep. Perhaps you have not been able to have the brakes replaced on your Jeep as soon as you would have liked. Now you can use the money from your tax refund to do this.  

We're Always here to help you at Buter CDJR in Beaufort, serving Charleston, Hilton Head and the low country 

It's not always as easy to navigate the car-buying process. Along the way, there are a lot of financial factors and other decisions to be made. Don’t hesitate to contact us to help with financing or to take a test drive of a new Jeep or RAM truck or other vehicle you have your eye on.